‘STATE OF ARIZONA Dovetas A. Dery Ovrice oF THE GOVERNOR Execurive Opnice: Governor, Tuly 6, 2022, ‘The Honorable Kavie Hobbs Sceretary of State 1700 W. Washington St, 7th Floor Phoenix, AZ 85007 RE: H.B, 2685 (transportation tax; Maricopa County; election) Dear Secretary Hobbs, ‘Today I vetoed H.E, 2685, a measure to extend a sales tax for transportation funding, Across the country, families are facing unprecedented costs for food, gas, housing, and other necessities ‘Now, with inflation higher than it has been in 40 years, i not the time to ask voters in Arizona to tax themselves. Further, if and when voters consider such a proposal, they deserve to cast theit ballot for a measure thet is responsible and transparent — H.B. 2685 does not meet that standard, ‘The current transportation excise tax expires at the end of 2025, but rather than wait until the November 2024 election to consider an extension, H.B. 2685 wold create a statewide special election next spring that would not only require unnecessary costs to administer, but would come ata time when voter turnout will likely be low. Im addition, the ball te and description naratve as pressribed by H.B. 2685 isconceming compared to the 2004 ballot ile and description naratve. The changes ithe tile and description native are inflated, embellished and filo accurately reflect the realty of this ax burden on Arizonans This clearly evident in comparing the 2004 publicity pamphlet othe proposed 2023 publicity pamphlet: 2004 Election Publicity Pamphlet Title: “Regional Transportation Plan” Description: “A measure continuing the current transportation excise (sales) tax to address the regional trarsportation system by building new freeways, expanding existing freeways With additional access and capacity, constructing sreets and intersecrions, expanding transit by extending the planned light rail system, increasing the frequency of bus service and providing additional bus, dal-aride and vanpool services.” 1700 West WasttincTon Stauzr, PHOENDK, ABIZONA 85007 ox-s42-453 * wrwaaxgovernot govProposed 2023 Election Publicity Pamphlet ‘Title: “Regional Strategic Transportation Infrastructure Investment Pla Description: “An economie development measure continuing the existing transportation excise tax to ‘improve travel mes and choices, reduce congestion, aid public safety improve air ‘quality and adéress the regional transportation system by building, modernizing and ‘expanding new and existing freeways, streets and intersections, investing in future ‘transportation ‘echnology and innovations, addressing transportation safety issues, ‘extending the light rail system, improving and expanding regional bus transit and providing additional dial-a-ride services for the elderly and persons with disabilities, ‘vanpoo! services and pedestrian paths and bikeways.” ‘The langage is not ony biased, bu it fails to include any mention of the increase of 20 to 25 ‘years nor the changes to distribution for state highways, local roads and public transit. ‘Beyond the troubling election date and ballot description narrative there are other areas that rise concerns and should be addressed, First, this tax has been aditionaly set for a period of 20 years, H.B. 2685 ignores this precedent and increases the tax period to 25 years. The additional five years are a tax increase and should ‘not be perceived a a twx continuation, ‘Second, Maricopa County residents will have been taxed for 40 years, which has resulted in significant expansion ofthe regional freeway system. With this expansion comes a responsibility to maintain tis infrastructure into the future, Instead, H.B. 2685 reduces the amount of fund ‘being distributed to the regional freeway system and fils to provide a clear framework on how ‘these assets will be maintained as they continue to age. This isnot the appropriate financial stewardship to preserve the investment from previous generat ‘Third, the infrastructure plan that is part ofthis 25 year tax was developed prior to the passage of the Investment in Infrastructure and Jobs Act and does not properly account forthe opportunity ‘to properly leverage state dollars for federal transportation infrastructure funding. Senator Michelle Ugenti-Rita offered numerous commonsense amendments to this bill that Would have made the measure more consistent withthe 2004 measur, allowing more ‘transparency and accountability. The amendments would have ensured a fairer ballot description narrative; more strategie insight into how these transportation and infrastructure dollars would be spent and how they relate to the needs of everyday Arizonans; and provided more local control in ‘administering the call fer the election. Unfortunately, none ofthese amendments were adopted. ‘Targeted, responsible ard sustainable investments in infrastructure wil be critical as more families and businesses choose Arizona. However, asking voters to tax themselves, prematurely,with colorful ballot language during atime of of our growing state. ‘inflation isnot the way to address the needs Arizona must make sound and strategic investments in transportation infrastructure, especially during ths high inflationery period and while governments are experiencing surplus tax revenue, ‘The State is experiencing a $4.5 billion surplus. Under the curent budget, Arizona will invest $1 billion in transportation infrastructure while simultaneously cuting taxes to provide relief to families. Sincerely, Sige ta Governor State of Arizona ce: The Honorable Karen Fann ‘The Honorable Rusty Bowers Representative Frank Carroll, Senate Chief Clerk of the House of Representatives ‘Arizona News Service